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By XE Market Analysis February 13, 2014 2:56 pm
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    XE Market Analysis: Asia - Feb 13, 2014

    FX trade was fairly quiet on N.Y. on Thursday, though the dollar stayed down after a round of weaker U.S. data. Weekly jobless claims were higher than expected, while January retail sales missed the mark. Equities were sharply lower after the softer data, though managed decent gains by the end of the session, while Yields moved higher on mixed Treasury auctions. EUR-USD maintained altitude above 1.3650 through the session, though peaked just over 1.3690. USD-JPY fell to 101.70, though as has been the case of late, found ongoing support under 102.00. The pairing reclaimed the figure later in the session. Friday's U.S. calendar will feature import/export prices, industrial production, and Michigan sentiment.

    [EUR, USD]
    EUR- USD spiked up to over 1.3685 from 1.3630 in Europe, with the gain partly inspired by remarks from ECB's Coere, who said that the drop in inflation would not as yet be sufficient to spark further ECB action. The pairing maintained the 1.3650 level through the U.S. session, and ranges were kept to 1.3658 to 1.3692 throughout.

    [USD, JPY]
    USD-JPY eased to intra day lows near 101.68. Equity futures sold off fairly hard on the data, as Treasury yields fell back, all negatives for USD-JPY. As Wall Street turned positive however, dollar-yen reclaimed the 102 handle, peaking at 102.26 into the London close.

    [GBP, USD]
    Cable steadied well above 1.6600 in N.Y. trade on Thursday, but ran into sellers into the 1.6675 region. Sterling rallied and Gilt future dropped on the BoE inflation report on Wednesday, which brought a big upward adjustment to the central bank's 2014 GDP estimate, to 3.4% from 2.8% previously, though CPI forecasts were revised lower for this year and 2015. The improved outlook should keep sterling in buy the dip mode for the time being.

    [USD, CHF]
    EUR-CHF eased back into 1.2210 in early N.Y. trade, after edging out a two-week high of 1.2260 in N.Y. on Wednesday. The turnaround higher on Wall Street later took the cross back over 1.2220. Generally better risk levels should keep the CHF somewhat pressured.

    [USD, CAD]
    USD-CAD rallied to 1.1026 highs early on, where it ran into selling interest ahead of 1.1030 standing offers. The turnaround into positive territory on Wall Street helped the CAD since, with risk taking improving. More corporate buying interest was noted from 1.0980, though it appeared most was filled in on the pairing's move to 1.0955 lows.

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